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of <h1>Directors' fees taxed only in company's resident state under Double Tax Avoidance Agreement to prevent double taxation.</h1> Directors' fees and similar payments received by a resident of one Contracting State, in their role as a board member or similar position of a company residing in the other Contracting State, are subject to taxation exclusively in the latter state where the company resides. This provision is part of the Double Tax Avoidance Agreement (DTAA) between the two states, aimed at preventing double taxation and clarifying tax obligations for cross-border income derived from directorial roles.
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